S 3464 ISCommentsClose CommentsPermalink

To establish an energy and climate policy framework to reach measurable gains in reducing dependence on foreign oil, saving Americans money, improving energy security, and cutting greenhouse gas emissions, and for other purposes.CommentsClose CommentsPermalink

June 9, 2010CommentsClose CommentsPermalink

Mr. LUGAR (for himself, Mr. GRAHAM, and Ms. MURKOWSKI) introduced the following bill; which was read twice and referred to the Committee on FinanceCommentsClose CommentsPermalink

To establish an energy and climate policy framework to reach measurable gains in reducing dependence on foreign oil, saving Americans money, improving energy security, and cutting greenhouse gas emissions, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the ‘Practical Energy and Climate Plan Act of 2010’.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents of this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink

TITLE I--REDUCING FOREIGN OIL DEPENDENCE

Subtitle A--Vehicle Efficiency

Sec. 101. Fuel efficiency standards.CommentsClose CommentsPermalink





Sec. 102. Revenue neutral fuel performance program for motor vehicles.CommentsClose CommentsPermalink

Subtitle B--Fuel Choice

Sec. 111. Production incentives for renewable fuels.CommentsClose CommentsPermalink





Sec. 112. Ensuring the availability of dual fueled automobiles and light duty trucks.CommentsClose CommentsPermalink

TITLE II--ENERGY EFFICIENCY

Subtitle A--National Building Energy Performance Standards

Sec. 201. Greater energy efficiency in building codes.CommentsClose CommentsPermalink

Subtitle B--Federal Buildings

Sec. 211. Energy efficient Federal buildings.CommentsClose CommentsPermalink

Subtitle C--Homes and Buildings Energy Retrofits Program

Sec. 221. Definitions.CommentsClose CommentsPermalink





Sec. 222. Homes and Buildings Energy Retrofits Program.CommentsClose CommentsPermalink





Sec. 223. General provisions.CommentsClose CommentsPermalink





Sec. 224. Authorization of appropriations.CommentsClose CommentsPermalink

Subtitle D--Rural Energy Savings Program

Sec. 231. Rural energy savings program.CommentsClose CommentsPermalink

Subtitle E--Industrial Energy Efficiency

Sec. 241. State partnership industrial energy efficiency revolving loan program.CommentsClose CommentsPermalink

Subtitle F--Appliance and Equipment Efficiency Standards

Sec. 251. Appliance and equipment efficiency.CommentsClose CommentsPermalink





Sec. 252. Federal procurement of energy efficient products.CommentsClose CommentsPermalink

TITLE III--DIVERSE DOMESTIC POWER

Sec. 301. Federal diverse energy standard.CommentsClose CommentsPermalink





Sec. 302. Fossil fuel generating facility retirement program.CommentsClose CommentsPermalink





Sec. 303. Funding for loan guarantees for advanced nuclear energy facilities.CommentsClose CommentsPermalink

TITLE IV--MEASUREMENT AND REVIEW OF ENERGY AND CLIMATE PROGRAMS

Sec. 401. Measurement and review of energy and climate change programs.CommentsClose CommentsPermalink

TITLE I--REDUCING FOREIGN OIL DEPENDENCECommentsClose CommentsPermalink

Subtitle A--Vehicle EfficiencyCommentsClose CommentsPermalink

SEC. 101. FUEL EFFICIENCY STANDARDS.

(a) Standards for Light Vehicles- Section 32902 of title 49, United States Code, is amended--CommentsClose CommentsPermalink





(1) in subsection (a), by inserting ‘, reflecting at least a 4 percent annual increase beginning in model year 2017 (rounded to the nearest 1/10 mile per gallon)’ before the period at the end;CommentsClose CommentsPermalink





(2) in subsection (b)--CommentsClose CommentsPermalink





(A) in paragraph (2)--CommentsClose CommentsPermalink





(i) in subparagraph (A)--CommentsClose CommentsPermalink





(I) in the subparagraph heading, by striking ‘2020’ and inserting ‘2016’;CommentsClose CommentsPermalink





(II) by striking ‘2020’ and inserting ‘2016’; andCommentsClose CommentsPermalink





(III) by striking ‘35’ and inserting ‘34.1’;CommentsClose CommentsPermalink





(ii) in subparagraph (B)--CommentsClose CommentsPermalink





(I) in the subparagraph heading, by striking ‘2021’ and inserting ‘2017’;CommentsClose CommentsPermalink





(II) by striking ‘2021’ and inserting ‘2017’; andCommentsClose CommentsPermalink





(III) by inserting ‘, reflecting at least a 4 percent annual increase for each model year’ before the period at the end; andCommentsClose CommentsPermalink





(iii) in subparagraph (C)--CommentsClose CommentsPermalink





(I) by striking ‘subparagraph (A)’ and inserting ‘subparagraphs (A) and (B)’;CommentsClose CommentsPermalink





(II) by striking ‘and ending with model year 2020’; andCommentsClose CommentsPermalink





(III) by adding at the end the following: ‘The projected aggregate level of average fuel economy for model year 2017 and each succeeding model year shall reflect at least a 4 percent increase from the level for the prior model year (rounded to the nearest 1/10 mile per gallon).’; andCommentsClose CommentsPermalink





(B) by adding at the end the following:CommentsClose CommentsPermalink





‘(5) UNIFIED REGULATORY REQUIREMENTS- Regulations under this subsection and amendments to regulations under subsection (c) shall, to the maximum extent practicable, be promulgated (including through joint rulemaking), coordinated, and implemented in conjunction with pollutant regulations promulgated by the the Administrator of the Environmental Protection Agency.’;CommentsClose CommentsPermalink





(3) in subsection (c)--CommentsClose CommentsPermalink





(A) by inserting ‘(1)’ before ‘The Secretary’;CommentsClose CommentsPermalink





(B) by striking ‘that model year.’ and inserting the following: ‘model year, including to a level lower than a 4 percent annual increase if the Secretary determines the standards prescribed under subsection (b) for each model year--CommentsClose CommentsPermalink





‘(A) are technologically unachievable;CommentsClose CommentsPermalink





‘(B) cannot be achieved without materially reducing the overall safety of automobiles manufactured or sold in the United States; orCommentsClose CommentsPermalink





‘(C) is shown, by clear and convincing evidence, not to be cost effective.CommentsClose CommentsPermalink





‘(2) If a standard reflecting a level lower than a 4 percent annual increase is prescribed for a model year under subsection (b), such standard shall be the maximum standard that--CommentsClose CommentsPermalink





‘(A) is technologically achievable;CommentsClose CommentsPermalink





‘(B) can be achieved without materially reducing the overall safety of automobiles manufactured or sold in the United States; andCommentsClose CommentsPermalink





‘(C) is cost effective.’;CommentsClose CommentsPermalink





(C) by striking ‘Section 553’ and inserting the following:CommentsClose CommentsPermalink





‘(3) Section 553’; andCommentsClose CommentsPermalink





(D) by adding at the end the following:CommentsClose CommentsPermalink





‘(4) Not later than 90 days before issuing an amended standard that would lower the fuel economy standards below the level prescribed under subsection (b), the Secretary shall--CommentsClose CommentsPermalink





‘(A) provide written notification to the Committee on Energy and Commerce of the House of Representatives, the Committee on Commerce, Science, and Transportation of the Senate, and the Committee on Energy and Natural Resources of the Senate, regarding the amendments made to the fuel economy standards prescribed in subsection (b); andCommentsClose CommentsPermalink





‘(B) make publicly available non-proprietary documentation regarding the amendment decision’; andCommentsClose CommentsPermalink





(4) in subsection (f)--CommentsClose CommentsPermalink





(A) by striking ‘When deciding’ and inserting ‘(1) In determining’;CommentsClose CommentsPermalink





(B) by striking ‘economic practicability’ and inserting ‘cost effectiveness’; andCommentsClose CommentsPermalink





(C) by adding at the end the following:CommentsClose CommentsPermalink





‘(2) In determining cost effectiveness under paragraph (1), the Secretary of Transportation shall take into account the total value to the Nation of reduced petroleum use, including the value of reducing external costs of petroleum use, using a value for such costs equal to 50 percent of the value of a gallon of gasoline saved or the amount determined in an analysis of the external costs of petroleum use that considers--CommentsClose CommentsPermalink





‘(A) value to consumers;CommentsClose CommentsPermalink





‘(B) economic security;CommentsClose CommentsPermalink





‘(C) national security;CommentsClose CommentsPermalink





‘(D) foreign policy;CommentsClose CommentsPermalink





‘(E) the impact of oil use on--CommentsClose CommentsPermalink





‘(i) sustained cartel rents paid to foreign suppliers;CommentsClose CommentsPermalink





‘(ii) long-run potential gross domestic product due to higher normal-market oil price levels, including inflationary impacts;CommentsClose CommentsPermalink





‘(iii) import costs, wealth transfers, and potential gross domestic product due to increased trade imbalances;CommentsClose CommentsPermalink





‘(iv) import costs and wealth transfers during oil shocks;CommentsClose CommentsPermalink





‘(v) macroeconomic dislocation and adjustment costs during oil shocks;CommentsClose CommentsPermalink





‘(vi) the cost of existing energy security policies, including the management of the Strategic Petroleum Reserve;CommentsClose CommentsPermalink





‘(vii) the timing and severity of the oil peaking problem;CommentsClose CommentsPermalink





‘(viii) the risk, probability, size, and duration of oil supply disruptions;CommentsClose CommentsPermalink





‘(ix) OPEC strategic behavior and long-run oil pricing;CommentsClose CommentsPermalink





‘(x) the short term elasticity of energy demand and the magnitude of price increases resulting from a supply shock;CommentsClose CommentsPermalink





‘(xi) oil imports, military costs, and related security costs, including intelligence, homeland security, sea lane security and infrastructure, and other military activities;CommentsClose CommentsPermalink





‘(xii) oil imports, diplomatic and foreign policy flexibility, and connections to geopolitical strife, terrorism, and international development activities;CommentsClose CommentsPermalink





‘(xiii) all relevant environmental hazards under the jurisdiction of the Environmental Protection Agency; andCommentsClose CommentsPermalink





‘(xiv) well-to-wheels urban and local air emissions of ‘pollutants’ and their uninternalized costs;CommentsClose CommentsPermalink





‘(F) the impact of the oil or energy intensity of the United States economy on the sensitivity of the economy to oil price changes, including the magnitude of gross domestic product losses in response to short-term price shocks or long-term price increases;CommentsClose CommentsPermalink





‘(G) the impact of United States payments for oil imports on political, economic, and military developments in unstable or unfriendly oil exporting countries;CommentsClose CommentsPermalink





‘(H) the uninternalized costs of pipeline and storage oil seepage, and for risk of oil spills from production, handling, transport, and related landscape damage; andCommentsClose CommentsPermalink





‘(I) additional relevant factors, as determined by the Secretary in consultation with the Secretary of Energy, the Administrator of the Environmental Protection Agency, the Secretary of State, the Secretary of Defense, the Secretary of Homeland Security, and the Director of National Intelligence.CommentsClose CommentsPermalink





‘(3) In considering the value to consumers of a gallon of gasoline saved, the Secretary of Transportation may not use a value that is less than the greatest of--CommentsClose CommentsPermalink





‘(A) the average national cost of a gallon of gasoline sold in the United States during the 12-month period ending on the date on which the new fuel economy standard is proposed;CommentsClose CommentsPermalink





‘(B) the most recent weekly estimate by the Energy Information Administration of the Department of Energy of the average national cost of a gallon of gasoline (all grades) sold in the United States; orCommentsClose CommentsPermalink





‘(C) the gasoline prices projected by the Energy Information Administration for the 20-year period beginning in the year following the year in which the standards are established.’.CommentsClose CommentsPermalink





(b) Standards for Medium- and Heavy-Duty Vehicles- Section 32902(k) of title 49, United States Code, is amended--CommentsClose CommentsPermalink





(1) in paragraph (1)--CommentsClose CommentsPermalink





(A) in subparagraph (C), by striking ‘and’ at the end;CommentsClose CommentsPermalink





(B) in subparagraph (D), by striking the period at the end and inserting ‘; and’; andCommentsClose CommentsPermalink





(C) by adding at the end the following:CommentsClose CommentsPermalink





‘(E) greatest achievable fuel efficiency improvement targets for rules pertaining to commercial medium- and heavy-duty vehicles and work trucks, taking into consideration the national security and economic benefits of reduced petroleum consumption and relevant factors in the manufacture and work accomplished of such vehicles.’;CommentsClose CommentsPermalink





(2) in paragraph (2)--CommentsClose CommentsPermalink





(A) by striking ‘Not later’ and inserting the following:CommentsClose CommentsPermalink





‘(A) IMPLEMENTATION- Not later’;CommentsClose CommentsPermalink





(B) by striking ‘fuel economy standards’ and inserting ‘fuel efficiency standards (taking into consideration the national security and economic benefits of reduced petroleum consumption)’;CommentsClose CommentsPermalink





(C) by striking ‘The Secretary may’ and inserting the following:CommentsClose CommentsPermalink





‘(B) SEPARATE STANDARDS- The Secretary may’;CommentsClose CommentsPermalink





(D) in subparagraph (B), as designated by subparagraph (C) of this paragraph, by adding at the end the following: ‘Recognizing the differentiated level of technological development and data available between classes, as identified by the National Academy of Sciences report ‘Technologies and Approaches to Reducing the Fuel Consumption of Medium- and Heavy-Duty Vehicles,’ the Secretary may implement regulations for certain vehicle classes and vehicle components authorized under this subsection, as designated by the Secretary, on an accelerated basis.’; andCommentsClose CommentsPermalink





(E) by adding at the end the following:CommentsClose CommentsPermalink





‘(C) APPLICABILITY; ADJUSTMENTS- Standards issued under this subsection--CommentsClose CommentsPermalink





‘(i) may apply to--CommentsClose CommentsPermalink





‘(I) vehicle components;CommentsClose CommentsPermalink





‘(II) whole vehicles based on 1 or more attributes; orCommentsClose CommentsPermalink





‘(III) any combination of (I) and (II);CommentsClose CommentsPermalink





‘(ii) shall, subject to paragraph (3)--CommentsClose CommentsPermalink





‘(I) be implemented for vehicles manufactured for sale in the United States during or before model year 2017; andCommentsClose CommentsPermalink





‘(II) allow for fuel efficiency regulation of vehicle components or whole vehicles before such model year; andCommentsClose CommentsPermalink





‘(iii) shall periodically, but not less frequently than every 4 model years, be adjusted to achieve the maximum technologically feasible fuel efficiency improvements (taking into account considerations of oil import dependence) which do not materially affect vehicle safety and that are cost effective.CommentsClose CommentsPermalink





‘(D) COST EFFECTIVE CRITERIA- As used in subparagraph (C)(iii), the term ‘cost effective’ shall be subject to considerations established under subsection (f) and other criteria determined by the Secretary;CommentsClose CommentsPermalink





‘(E) WAIVER; NOTIFICATION; REVIEW- The Secretary may waive adjustments to the standards issued under this subsection if the Secretary determines that any such adjustment is not necessary to achieve the maximum technologically feasible fuel efficiency improvements. If such a determination is made, the Secretary shall provide written notification to the Committee on Energy and Commerce of the House of Representatives, the Committee on Commerce, Science, and Transportation of the Senate, and the Committee on Energy and Natural Resources of the Senate, not later than 180 days before the day that is 4 years after the day on which the most recent standards came into effect. The Secretary shall review any determination made under this subparagraph every 2 years.’; andCommentsClose CommentsPermalink





(3) by adding at the end the following:CommentsClose CommentsPermalink





‘(4) UNIFIED REGULATORY REQUIREMENTS- Regulations issued pursuant to paragraph (2) shall, to the maximum extent practicable, be established (including through joint rulemaking), coordinated, and implemented in conjunction with pollutant regulations administered by the Environmental Protection Agency.’.CommentsClose CommentsPermalink

SEC. 102. REVENUE NEUTRAL FUEL PERFORMANCE PROGRAM FOR MOTOR VEHICLES.

(a) Amendment of 1986 Code- Except as otherwise expressly provided, whenever in this section or section 103 an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.CommentsClose CommentsPermalink





(b) Fuel Performance Rebate- Subpart B of part IV of subchapter A of chapter 1 (relating to other credits) is amended by inserting after section 30D the following new section:CommentsClose CommentsPermalink

‘SEC. 30E. FUEL PERFORMANCE REBATE.

‘(a) Allowance of Credit-CommentsClose CommentsPermalink





‘(1) IN GENERAL- There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the amount determined under paragraph (2) with respect to any new qualified fuel-efficient motor vehicle placed in service by the taxpayer during the taxable year.CommentsClose CommentsPermalink





‘(2) CREDIT AMOUNT- With respect to each new qualified fuel-efficient motor vehicle, the amount determined under this paragraph shall be equal to the product of--CommentsClose CommentsPermalink





‘(A) the absolute value of the difference between the fuel-economy rating and the reference fuel-economy rating for such motor vehicle for the model year, andCommentsClose CommentsPermalink





‘(B) 100, andCommentsClose CommentsPermalink





‘(C) the applicable amount.CommentsClose CommentsPermalink





‘(3) APPLICABLE AMOUNT- For purposes of paragraph (2)(C), the applicable amount is equal to--CommentsClose CommentsPermalink





‘(A) in the case of model year 2011--CommentsClose CommentsPermalink





‘(i) $1,000, orCommentsClose CommentsPermalink





‘(ii) $2,000, if the fuel-economy rating for such motor vehicle is at least 50 percent more efficient than the reference fuel-economy rating for such motor vehicle as determined under paragraph (2)(A), andCommentsClose CommentsPermalink





‘(B) in the case of any succeeding model year--CommentsClose CommentsPermalink





‘(i) $1,500, orCommentsClose CommentsPermalink





‘(ii) $2,500, if the fuel-economy rating for such motor vehicle is at least 50 percent more efficient than the reference fuel-economy rating for such motor vehicle as determined under paragraph (2)(A), orCommentsClose CommentsPermalink





‘(iii) $3,500, if the fuel-economy rating for such motor vehicle is at least 75 percent more efficient than the reference fuel-economy rating for such motor vehicle as determined under paragraph (2)(A).CommentsClose CommentsPermalink





‘(b) New Qualified Fuel-Efficient Motor Vehicle- For purposes of this section, the term ‘new qualified fuel-efficient motor vehicle’ means a passenger automobile or light truck--CommentsClose CommentsPermalink





‘(1) which is treated as a motor vehicle for purposes of title II of the Clean Air Act,CommentsClose CommentsPermalink





‘(2) which achieves a fuel-economy rating that is more efficient than the reference fuel-economy rating for such motor vehicle for the model year,CommentsClose CommentsPermalink





‘(3) for which standards are prescribed pursuant to section 32902 of title 49, United States Code,CommentsClose CommentsPermalink





‘(4) the original use of which commences with the taxpayer,CommentsClose CommentsPermalink





‘(5) which is acquired for use or lease by the taxpayer and not for resale,CommentsClose CommentsPermalink





‘(6) the purchase price of which, less the amount allowable under subsection (a) with respect to such vehicle, does not exceed $50,000, andCommentsClose CommentsPermalink





‘(7) which is made by a manufacturer beginning with model year 2013.CommentsClose CommentsPermalink





‘(c) Application With Other Credits-CommentsClose CommentsPermalink





‘(1) BUSINESS CREDIT TREATED AS PART OF GENERAL BUSINESS CREDIT- So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)).CommentsClose CommentsPermalink





‘(2) REFUNDABLE PERSONAL CREDIT-CommentsClose CommentsPermalink





‘(A) IN GENERAL- For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart C for such taxable year (and not allowed under subsection (a)).CommentsClose CommentsPermalink





‘(B) REFUNDABLE CREDIT MAY BE TRANSFERRED-CommentsClose CommentsPermalink





‘(i) IN GENERAL- A taxpayer may, in connection with the purchase of a new qualified fuel-efficient motor vehicle, transfer any refundable credit described in subparagraph (A) to any person who is in the trade or business of selling new qualified fuel-efficient motor vehicles and who sold such vehicle to the taxpayer, but only if such person clearly discloses to such taxpayer, through the use of a window sticker attached to the new qualified fuel-efficient vehicle--CommentsClose CommentsPermalink





‘(I) the amount of the refundable credit described in subparagraph (A) with respect to such vehicle, andCommentsClose CommentsPermalink





‘(II) a notification that the taxpayer will not be eligible for any credit under section 30, 30B, or 30D with respect to such vehicle unless the taxpayer elects not to have this section apply with respect to such vehicle.CommentsClose CommentsPermalink





‘(ii) CERTIFICATION- A transferee of a refundable credit described in subparagraph (A) may not claim such credit unless such claim is accompanied by a certification to the Secretary that the transferee reduced the price the taxpayer paid for the new qualified fuel-efficient motor vehicle by the entire amount of such refundable credit.CommentsClose CommentsPermalink





‘(iii) CONSENT REQUIRED FOR REVOCATION- Any transfer under clause (i) may be revoked only with the consent of the Secretary.CommentsClose CommentsPermalink





‘(iv) REGULATIONS- The Secretary may prescribe such regulations as necessary to ensure that any refundable credit described in clause (i) is claimed once and not retransferred by a transferee.CommentsClose CommentsPermalink





‘(d) Other Definitions- For purposes of this section--CommentsClose CommentsPermalink





‘(1) FUEL-ECONOMY RATING- The term ‘fuel-economy rating’ means, with respect to any motor vehicle, the combined fuel-economy rating for such motor vehicle, expressed in gallons per mile, determined in accordance with section 32904 of title 49, United States Code.CommentsClose CommentsPermalink





‘(2) MODEL YEAR- The term ‘model year’ has the meaning given such term under section 32901(a) of such title 49.CommentsClose CommentsPermalink





‘(3) MOTOR VEHICLE- The term ‘motor vehicle’ means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels.CommentsClose CommentsPermalink





‘(4) REFERENCE FUEL-ECONOMY RATING- The term ‘reference fuel-economy rating’ means, with respect to any motor vehicle, the fuel economy standard for such motor vehicle, expressed in gallons per mile, calculated by applying the relevant vehicle attributes to the mathematical function published pursuant to section 32902(b)(3)(A) of title 49, United States Code.CommentsClose CommentsPermalink





‘(5) OTHER TERMS- The terms ‘automobile’, ‘passenger automobile’, ‘light truck’, and ‘manufacturer’ have the meanings given such terms in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.).CommentsClose CommentsPermalink





‘(e) Special Rules-CommentsClose CommentsPermalink





‘(1) BASIS REDUCTION- For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed (determined without regard to subsection (c)).CommentsClose CommentsPermalink





‘(2) NO DOUBLE BENEFIT- No other credit shall be allowable under this chapter for a new qualified fuel-efficient motor vehicle with respect to which a credit is allowed under this section.CommentsClose CommentsPermalink





‘(3) PROPERTY USED BY TAX-EXEMPT ENTITY- In the case of a vehicle whose use is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease, the person who sold such vehicle to the person or entity using such vehicle shall be treated as the taxpayer that placed such vehicle in service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection (a) with respect to such vehicle (determined without regard to subsection (c)). For purposes of subsection (c), property to which this paragraph applies shall be treated as of a character subject to an allowance for depreciation.CommentsClose CommentsPermalink





‘(4) PROPERTY USED OUTSIDE UNITED STATES, ETC., NOT QUALIFIED- No credit shall be allowable under subsection (a) with respect to any property referred to in section 50(b)(1) or with respect to the portion of the cost of any property taken into account under section 179.CommentsClose CommentsPermalink





‘(5) RECAPTURE- The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit (including recapture in the case of a lease period of less than the economic life of a vehicle).CommentsClose CommentsPermalink





‘(6) ELECTION NOT TO TAKE CREDIT- No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle.CommentsClose CommentsPermalink





‘(7) INTERACTION WITH AIR QUALITY AND MOTOR VEHICLE SAFETY STANDARDS- A motor vehicle shall not be considered eligible for a credit under this section unless such vehicle is in compliance with--CommentsClose CommentsPermalink





‘(A) the applicable provisions of the Clean Air Act for the applicable make and model year of the vehicle (or applicable air quality provisions of State law in the case of a State which has adopted such provisions under a waiver under section 209(b) of the Clean Air Act), andCommentsClose CommentsPermalink





‘(B) the motor vehicle safety provisions of sections 30101 through 30169 of title 49, United States Code.CommentsClose CommentsPermalink





‘(8) INFLATION ADJUSTMENT- In the case of any model year beginning in a calendar year after 2011, each dollar amount in subsection (a)(3)(B) shall be increased by an amount equal to--CommentsClose CommentsPermalink





‘(A) such dollar amount, multiplied byCommentsClose CommentsPermalink





‘(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the model year begins, determined by substituting ‘2010’ for ‘1992’ in subparagraph (B) thereof.CommentsClose CommentsPermalink





Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $100.CommentsClose CommentsPermalink





‘(f) Regulations-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Except as provided in paragraph (2), the Secretary shall promulgate such regulations as necessary to carry out the provisions of this section.CommentsClose CommentsPermalink





‘(2) COORDINATION IN PRESCRIPTION OF CERTAIN REGULATIONS- The Secretary of the Treasury, in coordination with the Secretary of Transportation and the Administrator of the Environmental Protection Agency, shall prescribe such regulations as necessary to determine whether a motor vehicle meets the requirements to be eligible for a credit under this section.’.CommentsClose CommentsPermalink





(c) Credit Allowed Against Alternative Minimum Tax-CommentsClose CommentsPermalink





(1) BUSINESS CREDIT- Section 38(c)(4)(B) is amended--CommentsClose CommentsPermalink





(A) by redesignating clauses (i) through (viii) as clauses (ii) through (ix), respectively; andCommentsClose CommentsPermalink





(B) by inserting before clause (ii) (as so redesignated) the following new clause:CommentsClose CommentsPermalink





‘(i) the credit determined under section 30E,’.CommentsClose CommentsPermalink





(2) PERSONAL CREDIT-CommentsClose CommentsPermalink





(A) Section 24(b)(3)(B) is amended by striking ‘and 30D’ and inserting ‘30D, and 30E’.CommentsClose CommentsPermalink





(B) Section 25(e)(1)(C)(ii) is amended by inserting ‘30E,’ after ‘30D,’.CommentsClose CommentsPermalink





(C) Section 25B(g)(2) is amended by striking ‘and 30D’ and inserting ‘30D, and 30E’.CommentsClose CommentsPermalink





(D) Section 26(a)(1) is amended by striking ‘and 30D’ and inserting ‘30D, and 30E’.CommentsClose CommentsPermalink





(E) Section 904(i) is amended by striking ‘and 30D’ and inserting ‘30D, and 30E’.CommentsClose CommentsPermalink





(d) Display of Credit- Section 32908(b)(1) of title 49, United States Code, is amended--CommentsClose CommentsPermalink





(1) by redesignating subparagraphs (E) and (F) as subparagraphs (F) and (G); andCommentsClose CommentsPermalink





(2) by inserting after subparagraph (D) the following new subparagraph:CommentsClose CommentsPermalink





‘(E) the amount of the fuel-efficient motor vehicle credit allowable with respect to the sale of the automobile under section 30E of the Internal Revenue Code of 1986 (26 U.S.C. 30E).’.CommentsClose CommentsPermalink





(e) Conforming Amendments-CommentsClose CommentsPermalink





(1) Section 38(a) is amended--CommentsClose CommentsPermalink





(A) in paragraph (34), by striking ‘plus’ at the end;CommentsClose CommentsPermalink





(B) in paragraph (35), by striking the period at the end and inserting ‘, plus’; andCommentsClose CommentsPermalink





(C) by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(36) the portion of the fuel performance rebate to which section 30E(c)(1) applies.’.CommentsClose CommentsPermalink





(2) Section 1016(a) is amended--CommentsClose CommentsPermalink





(A) in paragraph (36), by striking ‘and’ at the end;CommentsClose CommentsPermalink





(B) in paragraph (37), by striking the period at the end and inserting ‘, and’; andCommentsClose CommentsPermalink





(C) by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(38) to the extent provided in section 30E(e)(1).’.CommentsClose CommentsPermalink





(3) Section 6501(m) is amended by inserting ‘30E(e)(6),’ after ‘30D(e)(4),’.CommentsClose CommentsPermalink





(4) The table of section for subpart C of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 30D the following new item:CommentsClose CommentsPermalink





‘Sec. 30E. Fuel performance rebate.’.CommentsClose CommentsPermalink





(f) Revenue Neutrality Provisions for Fuel Performance Credit- Section 4064 is amended to read as follows:CommentsClose CommentsPermalink

‘SEC. 4064. FISCAL OFFSET PROVISIONS FOR FUEL PERFORMANCE CREDIT.

‘(a) Imposition of Tax-CommentsClose CommentsPermalink





‘(1) IN GENERAL- There is hereby imposed on the sale by the manufacturer of each fuel guzzler motor vehicle a tax equal to the product of--CommentsClose CommentsPermalink





‘(A) the absolute value of the difference between the fuel-economy rating and the reference fuel-economy rating for such motor vehicle for the model year, andCommentsClose CommentsPermalink





‘(B) 100, andCommentsClose CommentsPermalink





‘(C) the applicable amount.CommentsClose CommentsPermalink





‘(2) APPLICABLE AMOUNT- For purposes of paragraph (1)(C), the applicable amount is equal to--CommentsClose CommentsPermalink





‘(A) $1,500, orCommentsClose CommentsPermalink





‘(B) $2,500, if the fuel-economy rating for such motor vehicle is more than 50 percent less efficient than the reference fuel-economy rating for such motor vehicle as determined under paragraph (1)(A), orCommentsClose CommentsPermalink





‘(C) $3,500, if the fuel-economy rating for such motor vehicle is more than 75 percent less efficient than the reference fuel-economy rating for such motor vehicle as determined under paragraph (1)(A).CommentsClose CommentsPermalink





‘(b) Fuel Guzzler Motor Vehicle- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- The term ‘fuel guzzler motor vehicle’ means a passenger automobile or light truck--CommentsClose CommentsPermalink





‘(A) which is treated as a motor vehicle for purposes of title II of the Clean Air Act,CommentsClose CommentsPermalink





‘(B) which achieves a fuel-economy rating that is less efficient than the reference fuel-economy rating for such motor vehicle for the model year,CommentsClose CommentsPermalink





‘(C) which has a gross vehicle weight rating of not more than 8,500 pounds, andCommentsClose CommentsPermalink





‘(D) which is made by a manufacturer beginning with model year 2013.CommentsClose CommentsPermalink





‘(2) EXCEPTION FOR EMERGENCY VEHICLES- The term ‘fuel guzzler motor vehicle’ does not include any vehicle sold for use and used--CommentsClose CommentsPermalink





‘(A) as an ambulance or combination ambulance-hearse,CommentsClose CommentsPermalink





‘(B) by the United States or by a State or local government for police or other law enforcement purposes, orCommentsClose CommentsPermalink





‘(C) for other emergency uses prescribed by the Secretary by regulations.CommentsClose CommentsPermalink





‘(c) Other Definitions- For purposes of this section--CommentsClose CommentsPermalink





‘(1) FUEL-ECONOMY RATING- The term ‘fuel-economy rating’ means, with respect to any motor vehicle, the combined fuel-economy rating for such motor vehicle, expressed in gallons per mile, determined in accordance with section 32904 of title 49, United States Code.CommentsClose CommentsPermalink





‘(2) MODEL YEAR- The term ‘model year’ has the meaning given such term under section 32901(a) of such title 49.CommentsClose CommentsPermalink





‘(3) MOTOR VEHICLE- The term ‘motor vehicle’ means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels.CommentsClose CommentsPermalink





‘(4) REFERENCE FUEL-ECONOMY RATING- The term ‘reference fuel-economy rating’ means, with respect to any motor vehicle, the fuel economy standard for such motor vehicle, expressed in gallons per mile, calculated by applying the relevant vehicle attributes to the mathematical function published pursuant to section 32902(b)(3)(A) of title 49, United States Code.CommentsClose CommentsPermalink





‘(5) OTHER TERMS- The terms ‘automobile’, ‘passenger automobile’, ‘light truck’, and ‘manufacturer’ have the meanings given such terms in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.).CommentsClose CommentsPermalink





‘(d) Inflation Adjustment- In the case of any model year beginning in a calendar year after 2010, each dollar amount in subsection (a)(2) shall be increased by an amount equal to--CommentsClose CommentsPermalink





‘(1) such dollar amount, multiplied byCommentsClose CommentsPermalink





‘(2) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the model year begins, determined by substituting ‘2009’ for ‘1992’ in subparagraph (B) thereof.CommentsClose CommentsPermalink





Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $100.’.CommentsClose CommentsPermalink





(g) Conforming Amendments-CommentsClose CommentsPermalink





(1) The heading for part I of subchapter A of chapter 32 is amended by striking ‘gas’ and inserting ‘fuel’.CommentsClose CommentsPermalink





(2) The table of parts for subchapter A of chapter 32 is amended by striking ‘Gas’ in the item relating to part I and inserting ‘Fuel’.CommentsClose CommentsPermalink





(3) The table of sections for part I of subchapter A of chapter 32 is amended by striking ‘Gas’ in the item relating to section 4064 and inserting ‘Fuel’.CommentsClose CommentsPermalink





(4) The heading for subsection (d) of section 1016 is amended by striking ‘Gas Guzzler Tax’ and inserting ‘Fuel Performance Fee’.CommentsClose CommentsPermalink





(5) The heading for subsection (e) of section 4217 is amended by striking ‘Gas Guzzler Tax’ and inserting ‘Fuel Performance Fee’.CommentsClose CommentsPermalink





(6) The heading for subparagraph (B) of section 4217(e)(3) is amended by striking ‘GAS GUZZLER TAX’ and inserting ‘FUEL PERFORMANCE FEE’.CommentsClose CommentsPermalink





(7) Section 4217(e) is amended by striking ‘gas guzzler tax’ each place it appears and inserting ‘fuel performance fee’.CommentsClose CommentsPermalink





(h) Effective Date- The amendments made by subsections (a) through (e) shall apply to property placed in service after the date of the enactment of this Act. The amendments made by subsections (f) and (g) shall apply to sales of vehicles beginning with model year 2013.CommentsClose CommentsPermalink

Subtitle B--Fuel ChoiceCommentsClose CommentsPermalink

SEC. 111. PRODUCTION INCENTIVES FOR RENEWABLE FUELS.

Section 942 of the Energy Policy Act of 2005 (42 U.S.C. 16251) is amended--CommentsClose CommentsPermalink





(1) in the section heading, by striking ‘cellulosic biofuels’ and inserting ‘renewable fuels’;CommentsClose CommentsPermalink





(2) by striking ‘cellulosic biofuels’ each place it appears (other than subsection (b)(1)) and inserting ‘renewable fuels’;CommentsClose CommentsPermalink





(3) in subsection (a), by striking ‘biofuels’ each place it appears and inserting ‘renewable fuels’;CommentsClose CommentsPermalink





(4) in subsection (b)--CommentsClose CommentsPermalink





(A) by striking paragraph (1);CommentsClose CommentsPermalink





(B) by redesignating paragraph (2) as paragraph (1); andCommentsClose CommentsPermalink





(C) by inserting after paragraph (1) (as so redesignated) the following:CommentsClose CommentsPermalink





‘(2) RENEWABLE FUEL-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘renewable fuel’ has the meaning given the term in section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1)).CommentsClose CommentsPermalink





‘(B) INCLUSION- The term ‘renewable fuel’ includes algae.CommentsClose CommentsPermalink





‘(C) EXCLUSION- The term ‘renewable fuel’ does not include grain.’; andCommentsClose CommentsPermalink





(5) in subsection (f), by inserting ‘for each of fiscal years 2011 through 2015’ before the period at the end.CommentsClose CommentsPermalink

SEC. 112. ENSURING THE AVAILABILITY OF DUAL FUELED AUTOMOBILES AND LIGHT DUTY TRUCKS.

(a) In General- Chapter 329 of title 49, United States Code, is amended by inserting after section 32902 the following:CommentsClose CommentsPermalink

‘Sec. 32902A. Requirement to manufacture dual fueled automobiles and light duty trucks

‘(a) In General- For each model year listed in the following table, each manufacturer shall ensure that the percentage of automobiles and light duty trucks manufactured by the manufacturer for sale in the United States that are dual fueled automobiles and light duty trucks is not less than the percentage set forth for that model year in the following table:CommentsClose CommentsPermalink

-----------------------------------------------------------CommentsClose CommentsPermalink

-----------------------------------------------------------CommentsClose CommentsPermalink

Model years 2013 and 2014                      50 percent  CommentsClose CommentsPermalink

Model year 2015 and each subsequent model year 90 percent. CommentsClose CommentsPermalink

-----------------------------------------------------------CommentsClose CommentsPermalink

‘(b) Exception- Subsection (a) shall not apply to automobiles or light duty trucks that operate only on electricity or other non-petroleum based energy sources.’.CommentsClose CommentsPermalink





(b) Clerical Amendment- The table of sections for chapter 329 of title 49, United States Code, is amended by inserting after the item relating to section 32902 the following:CommentsClose CommentsPermalink





‘32902A. Requirement to manufacture dual fueled automobiles and light duty trucks.’.CommentsClose CommentsPermalink





(c) Rulemaking- Not later than 1 year after the date of the enactment of this Act, the Secretary of Transportation shall prescribe regulations to carry out the amendments made by this Act.CommentsClose CommentsPermalink

TITLE II--ENERGY EFFICIENCYCommentsClose CommentsPermalink

Subtitle A--National Building Energy Performance StandardsCommentsClose CommentsPermalink

SEC. 201. GREATER ENERGY EFFICIENCY IN BUILDING CODES.

(a) In General- Section 304 of the Energy Conservation and Production Act (42 U.S.C. 6833) is amended to read as follows:CommentsClose CommentsPermalink

‘SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES.

‘(a) Updating National Model Building Energy Codes-CommentsClose CommentsPermalink





‘(1) TARGETS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The Secretary shall support updating the national model building energy codes and standards at least every 3 years to achieve overall energy savings, compared to the 2006 IECC for residential buildings and ASHRAE Standard 90.1-2004 for commercial buildings.CommentsClose CommentsPermalink





‘(B) MINIMUM REQUIREMENTS- The targets for overall energy savings shall be at least a--CommentsClose CommentsPermalink





‘(i) 30 percent reduction in energy use relative to a comparable building constructed in compliance with the 2006 IECC by January 1, 2012;CommentsClose CommentsPermalink





‘(ii) 30 percent reduction in energy use relative to a comparable building constructed in compliance with the ASHRAE Standard 90.1-2004 by May 1, 2012;CommentsClose CommentsPermalink





‘(iii) 50 percent reduction in energy use relative to a comparable building constructed in compliance with the 2006 IECC by January 1, 2015; andCommentsClose CommentsPermalink





‘(iv) 50 percent reduction in energy use relative to a comparable building constructed in compliance with the ASHRAE Standard 90.1-2004 by January 1, 2017.CommentsClose CommentsPermalink





‘(C) SPECIFIC YEARS-CommentsClose CommentsPermalink





‘(i) IN GENERAL- Targets for specific dates subsequent to the dates established under clauses (i) and (ii) of subparagraph (B) shall be set by the Secretary at least 3 years in advance of each target date, coordinated with the IECC and ASHRAE Standard 90.1 cycles, at a level of energy efficiency that is technologically feasible and life-cycle cost effective and on a path to achieving net-zero-energy buildings.CommentsClose CommentsPermalink





‘(ii) DIFFERENT TARGET YEARS-CommentsClose CommentsPermalink





‘(I) IN GENERAL- Subject to paragraph (2)(D), not later than 3 years prior to implementation of clauses (iii) and (iv) of subparagraph (B), the Secretary may set a different target date for the targets established under those clauses if the Secretary determines that a 50 percent target cannot be met by the target date.CommentsClose CommentsPermalink





‘(II) NOTICE- Not later than 15 days prior to a determination made under subclause (I), the Secretary shall inform the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives of the determination.CommentsClose CommentsPermalink





‘(D) TECHNICAL ASSISTANCE TO MODEL CODE-SETTING AND STANDARD DEVELOPMENT ORGANIZATIONS-CommentsClose CommentsPermalink





‘(i) IN GENERAL- The Secretary shall, on a timely basis, provide technical assistance to model code-setting and standard development organizations.CommentsClose CommentsPermalink





‘(ii) ASSISTANCE- The assistance shall, to the maximum extent practicable, include technical assistance identified by the organizations such as for--CommentsClose CommentsPermalink





‘(I) evaluating codes or standards proposals or revisions;CommentsClose CommentsPermalink





‘(II) building energy analysis and design tools;CommentsClose CommentsPermalink





‘(III) building demonstrations; andCommentsClose CommentsPermalink





‘(IV) design assistance and training.CommentsClose CommentsPermalink





‘(E) AMENDMENT PROPOSALS- The Secretary shall submit codes and standards amendment proposals to the model code-setting and standards development organizations, with supporting evidence, sufficient to enable the national model building energy codes and standards to meet the targets established under subparagraph (B).CommentsClose CommentsPermalink





‘(2) REVISION OF BUILDING ENERGY USE STANDARDS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- If the provisions of the IECC or ASHRAE Standard 90.1 regarding building energy use are revised, the Secretary shall make a determination not later than 180 days after the date of the revision, on whether the revision will--CommentsClose CommentsPermalink





‘(i) improve energy efficiency in buildings; andCommentsClose CommentsPermalink





‘(ii) meet the targets under paragraph (1).CommentsClose CommentsPermalink





‘(B) CODES OR STANDARDS NOT MEETING TARGETS-CommentsClose CommentsPermalink





‘(i) IN GENERAL- If the Secretary makes a determination under subparagraph (A)(ii) that a code or standard does not meet the targets established under paragraph (1), not later than 1 year after the date of the determination, the Secretary shall provide the model code or standard developer with proposed changes that would result in a model code or standard that meets the targets.CommentsClose CommentsPermalink





‘(ii) INCORPORATION OF CHANGES- On receipt of the proposed changes, the model code or standard developer shall have an additional 180 days to incorporate the proposed changes into the model code or standard.CommentsClose CommentsPermalink





‘(iii) ESTABLISHMENT BY SECRETARY- If the proposed changes are not incorporated into the model code or standard, the Secretary shall establish a modified code or standard that meets the established targets.CommentsClose CommentsPermalink





‘(iv) ADMINISTRATION- Any code or standard modified under this subparagraph shall--CommentsClose CommentsPermalink





‘(I) achieve a level of energy savings that is technologically feasible and life-cycle cost-effective;CommentsClose CommentsPermalink





‘(II) be based on the latest edition of the IECC or ASHRAE Standard 90.1, including any subsequent amendments, addenda, or additions, but may also consider other model codes or standards; andCommentsClose CommentsPermalink





‘(III) serve as the baseline for the next determination under subparagraph (A)(i).CommentsClose CommentsPermalink





‘(C) CODES OR STANDARDS NOT UPDATED FOR 3 YEARS-CommentsClose CommentsPermalink





‘(i) IN GENERAL- If the model code or standard is not revised by a target date under paragraph (1)(B), the Secretary shall, not later than 1 year after the target date, establish a modified code or standard that meets the targets under paragraph (1)(B).CommentsClose CommentsPermalink





‘(ii) REQUIREMENTS- Any modified code or standard shall--CommentsClose CommentsPermalink





‘(I) achieve a level of energy savings that is technologically feasible and life-cycle cost-effective;CommentsClose CommentsPermalink





‘(II) be based on the latest revision of the IECC or ASHRAE Standard 90.1, including any amendments or additions to the code or standard, but may also consider other model codes or standards; andCommentsClose CommentsPermalink





‘(III) serve as the baseline for the next determination under subparagraph (A)(i).CommentsClose CommentsPermalink





‘(D) ADMINISTRATION- The Secretary shall--CommentsClose CommentsPermalink





‘(i) provide an opportunity for public comment on targets, determinations, and modified codes and standards under this subsection; andCommentsClose CommentsPermalink





‘(ii) publish in the Federal Register notice of targets, determinations, and modified codes and standards under this subsection.CommentsClose CommentsPermalink





‘(b) Establishing Minimum Building Efficiency Standard-CommentsClose CommentsPermalink





‘(1) DETERMINATION OF MINIMUM BUILDING EFFICIENCY STANDARD-CommentsClose CommentsPermalink





‘(A) IN GENERAL- If the Secretary makes an affirmative determination or establishes a modified code or standard under paragraph (2), the Secretary shall establish the modified code or standard as the Minimum Building Efficiency Standard.CommentsClose CommentsPermalink





‘(B) STATE NOTIFICATION- The Secretary shall notify each State of the determination of the Minimum Building Efficiency Standard not later than 30 days after establishing or modifying the standard.CommentsClose CommentsPermalink





‘(2) INITIAL MINIMUM BUILDING EFFICIENCY STANDARD- As of the date of enactment of the Practical Energy and Climate Plan Act of 2010, the Minimum Building Efficiency Standard shall be--CommentsClose CommentsPermalink





‘(A) the 2009 IECC for residential buildings; andCommentsClose CommentsPermalink





‘(B) the ASHRAE Standard 90.1-2007 for commercial buildings.CommentsClose CommentsPermalink





‘(c) State Certification of Building Energy Code Updates-CommentsClose CommentsPermalink





‘(1) REVIEW AND UPDATING OF CODES BY EACH STATE-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Not later than 2 years after the date on which the Minimum Building Efficiency Standard is established under subsection (b), each State shall certify to the Secretary whether or not the State has reviewed and updated the provisions of the residential and commercial building codes of the State regarding energy efficiency.CommentsClose CommentsPermalink





‘(B) DEMONSTRATION- For a State to be in compliance with this section, the certification under subparagraph (A) shall include a demonstration that the code provisions that are in effect throughout the State--CommentsClose CommentsPermalink





‘(i) meet or exceed the Minimum Building Efficiency Standard; orCommentsClose CommentsPermalink





‘(ii) achieve equivalent or greater energy savings.CommentsClose CommentsPermalink





‘(d) State Certification of Compliance With Building Codes-CommentsClose CommentsPermalink





‘(1) REQUIREMENT-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Not later than 3 years after the date of a certification under subsection (c), each State shall certify whether or not the State has--CommentsClose CommentsPermalink





‘(i) achieved compliance under paragraph (3) with the certified State building energy code or the Minimum Building Efficiency Standard; orCommentsClose CommentsPermalink





‘(ii) made significant progress under paragraph (4) toward achieving compliance with the certified State building energy code or the Minimum Building Efficiency Standard.CommentsClose CommentsPermalink





‘(B) REPEAT CERTIFICATIONS- If a State certifies progress toward achieving compliance, the State shall repeat the certification each year until the State certifies that the State has achieved compliance.CommentsClose CommentsPermalink





‘(2) MEASUREMENT OF COMPLIANCE- A certification under paragraph (1) shall include documentation of the rate of compliance based on--CommentsClose CommentsPermalink





‘(A) independent inspections of a random sample of the new and renovated buildings covered by the code in the preceding year; orCommentsClose CommentsPermalink





‘(B) an alternative method that yields an accurate measure of compliance.CommentsClose CommentsPermalink





‘(3) ACHIEVEMENT OF COMPLIANCE- A State shall be considered to achieve compliance under paragraph (1) if--CommentsClose CommentsPermalink





‘(A) at least 90 percent of new building space covered by the code in the preceding year substantially meets all the requirements of the code regarding energy efficiency, or achieves equivalent or greater energy savings; orCommentsClose CommentsPermalink





‘(B) the estimated excess energy use of new and renovated buildings that did not meet the code in the preceding year, compared to a baseline of comparable buildings that meet the code, is not more than 5 percent of the estimated energy use of all new and renovated buildings covered by the code during the preceding year.CommentsClose CommentsPermalink





‘(4) SIGNIFICANT PROGRESS TOWARD ACHIEVEMENT OF COMPLIANCE-CommentsClose CommentsPermalink





‘(A) IN GENERAL- For purposes of paragraph (1), a State shall be considered to have made significant progress toward achieving compliance if the State--CommentsClose CommentsPermalink





‘(i) has developed and is implementing a plan for achieving compliance not later than 8 years after the date of enactment of the Practical Energy and Climate Plan Act of 2010, assuming continued adequate funding, including active training and enforcement programs;CommentsClose CommentsPermalink





‘(ii) after 1 or more years of adequate funding, has demonstrated progress, in conformance with the plan described in clause (i), toward compliance;CommentsClose CommentsPermalink





‘(iii) after 5 or more years of adequate funding, meets the requirements of paragraph (3) if ‘80 percent’ is substituted for ‘90 percent’ or ‘10 percent’ is substituted for ‘5 percent’; andCommentsClose CommentsPermalink





‘(iv) has not had more than 8 years of adequate funding.CommentsClose CommentsPermalink





‘(B) ADEQUATE FUNDING- For purposes of this paragraph, funding shall be considered adequate if the Federal Government provides to the States at least $50,000,000 for a fiscal year in funding and support for development and implementation of State building energy codes, including for training and enforcement.CommentsClose CommentsPermalink





‘(C) TECHNICAL ASSISTANCE TO STATES- The Secretary shall make available technical assistance to States to implement this section, including procedures and technical analysis for States--CommentsClose CommentsPermalink





‘(i) to demonstrate that the code provisions of the States achieve equivalent or greater energy savings than the Minimum Building Efficiency Standard;CommentsClose CommentsPermalink





‘(ii) to document the rate of compliance with a building energy code; andCommentsClose CommentsPermalink





‘(iii) to improve and implement State residential and commercial building energy efficiency codes.CommentsClose CommentsPermalink





‘(D) VOLUNTARY ADVANCED CODES AND STANDARDS-CommentsClose CommentsPermalink





‘(i) IN GENERAL- The Secretary shall support the development of voluntary advanced model codes and standards for residential and commercial buildings that achieve energy savings of at least 30 percent compared to the Minimum Building Efficiency Standard, for use in--CommentsClose CommentsPermalink





‘(I) building design;CommentsClose CommentsPermalink





‘(II) voluntary and market transformation programs;CommentsClose CommentsPermalink





‘(III) incentive criteria; andCommentsClose CommentsPermalink





‘(IV) voluntary adoption by States.CommentsClose CommentsPermalink





‘(ii) UPDATES- The voluntary advanced model codes and standards shall be updated at least once every 3 years.CommentsClose CommentsPermalink





‘(e) Compliance-CommentsClose CommentsPermalink





‘(1) VALIDATION OF CERTIFICATION-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Subject to subparagraph (B), not later than 60 days after the date of receipt of certification required by subsection (c), the Secretary shall inform the submitting State in writing of whether the Secretary validates the certification and, if not validated, the reasons for not validating the certification as submitted.CommentsClose CommentsPermalink





‘(B) DEFERRAL- On the request of the State, the Secretary may defer the validation decision for an additional 90 days.CommentsClose CommentsPermalink





‘(C) NONCOMPLIANCE- Any State for which the Secretary has not accepted a certification by a deadline under subsection (c) or (d) shall be considered out of compliance with this section.CommentsClose CommentsPermalink





‘(2) LOCAL GOVERNMENT- In any State that is out of compliance with this section, a local government may be considered in compliance with this section by meeting the certification requirements under subsections (c) and (d).CommentsClose CommentsPermalink





‘(3) ANNUAL REPORTS BY SECRETARY-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The Secretary shall annually submit to Congress, and publish in the Federal Register, a report that describes--CommentsClose CommentsPermalink





‘(i) the status of Minimum Building Efficiency Standards;CommentsClose CommentsPermalink





‘(ii) the status of code adoption and compliance in the States; andCommentsClose CommentsPermalink





‘(iii) implementation of this section.CommentsClose CommentsPermalink





‘(B) IMPACTS- The report shall include estimates of impacts of past action under this section, and potential impacts of further action, on lifetime energy use by buildings and resulting energy costs to individuals and businesses.CommentsClose CommentsPermalink





‘(4) CONSIDERATION IN GRANT PROCESS- The Secretary shall consider as a factor of any grants to be awarded by the Department to States whether or not the State has achieved compliance or is making significant progress towards achieving compliance under paragraphs (3) and (4) of subsection (d).CommentsClose CommentsPermalink





‘(f) Availability of Implementation Assistance Funding-CommentsClose CommentsPermalink





‘(1) IN GENERAL-CommentsClose CommentsPermalink





‘(A) REQUIREMENT- The Secretary shall provide implementation assistance funding to States and local governments to implement this section, and to improve and implement State residential and commercial building energy efficiency codes, including increasing and verifying compliance with the codes and training of State and local building code officials.CommentsClose CommentsPermalink





‘(B) STATE ACTIONS- In determining whether, and in what amount, to provide implementation assistance funding under this subsection, the Secretary shall consider the actions proposed by the State--CommentsClose CommentsPermalink





‘(i) to implement this section;CommentsClose CommentsPermalink





‘(ii) to improve and implement residential and commercial building energy efficiency codes; andCommentsClose CommentsPermalink





‘(iii) to promote building energy efficiency through the use of the codes.CommentsClose CommentsPermalink





‘(2) ADDITIONAL FUNDING- Additional funding shall be provided under this subsection for implementation of a plan to achieve and document at least a 90-percent rate of compliance with residential and commercial building energy efficiency codes, based on energy performance--CommentsClose CommentsPermalink





‘(A) to a State that has adopted and is implementing, on a statewide basis--CommentsClose CommentsPermalink





‘(i) a residential building energy efficiency code that meets or exceeds the requirements of the 2009 IECC, or any succeeding version of that code that has received an affirmative determination from the Secretary under subsection (a)(2)(A)(i); andCommentsClose CommentsPermalink





‘(ii) a commercial building energy efficiency code that meets or exceeds the requirements of the ASHRAE Standard 90.1-2007, or any succeeding version of that standard that has received an affirmative determination from the Secretary under subsection (a)(2)(A)(i); orCommentsClose CommentsPermalink





‘(B) in a State in which there is no statewide energy code for either residential buildings or commercial buildings, or in which State codes fail to comply with subparagraph (A), to a local government that has adopted and is implementing residential and commercial building energy efficiency codes, as described in subparagraph (A).CommentsClose CommentsPermalink





‘(3) TRAINING- Of the amounts made available under this subsection, the State may use amounts required, but not to exceed $500,000 per State, to train State and local building code officials to implement and enforce codes described in paragraph (2).CommentsClose CommentsPermalink





‘(4) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out this subsection--CommentsClose CommentsPermalink





‘(A) $300,000,000 for each of fiscal years 2011 through 2015; andCommentsClose CommentsPermalink





‘(B) such sums as are necessary for fiscal year 2016 and each fiscal year thereafter.’.CommentsClose CommentsPermalink





(b) Definition of IECC- Section 303 of the Energy Conservation and Production Act (42 U.S.C. 6832) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(17) IECC- The term ‘IECC’ means the International Energy Conservation Code.’.CommentsClose CommentsPermalink

Subtitle B--Federal BuildingsCommentsClose CommentsPermalink

SEC. 211. ENERGY EFFICIENT FEDERAL BUILDINGS.

Section 543 of the National Energy Conservation Policy Act (42 U.S.C. 8253) is amended--CommentsClose CommentsPermalink





(1) by redesignating the second subsection (f) (relating to large capital energy investments) as subsection (g); andCommentsClose CommentsPermalink





(2) by adding at the end the following:CommentsClose CommentsPermalink





‘(h) Energy Efficient Federal Buildings-CommentsClose CommentsPermalink





‘(1) IN GENERAL- To the maximum extent practicable, each Federal agency shall ensure that any new Federal building is designed in a manner to enhance energy efficiency, including--CommentsClose CommentsPermalink





‘(A) by complying with paragraphs (2) and (3); andCommentsClose CommentsPermalink





‘(B) by identifying and analyzing impacts from energy usage and alternative energy sources in all environmental impact statements or similar analyses required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) for proposals covering new or expanded Federal facilities.CommentsClose CommentsPermalink





‘(2) FIRST STAGE- To the maximum extent practicable, each Federal agency shall ensure that any Federal building that enters the design phase on or after January 1, 2012--CommentsClose CommentsPermalink





‘(A) is designed to exceed national building performance standards;CommentsClose CommentsPermalink





‘(B) makes appropriate use of cost-effective, innovative technologies and strategies to minimize consumption of energy, water, and materials; andCommentsClose CommentsPermalink





‘(C) is located in accordance with a process that considers sites with convenient access to public transportation alternatives.CommentsClose CommentsPermalink





‘(3) SECOND STAGE- To the maximum extent practicable, each Federal agency shall ensure that any Federal building that enters the design phase on or after January 1, 2020, is designed to achieve net-zero energy use by January 1, 2030.’.CommentsClose CommentsPermalink

Subtitle C--Homes and Buildings Energy Retrofits ProgramCommentsClose CommentsPermalink

SEC. 221. DEFINITIONS.

In this subtitle:CommentsClose CommentsPermalink





(1) COST- The term ‘cost’ has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).CommentsClose CommentsPermalink





(2) DIRECT LOAN- The term ‘direct loan’ has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).CommentsClose CommentsPermalink





(3) LOAN GUARANTEE- The term ‘loan guarantee’ has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).CommentsClose CommentsPermalink





(4) PROGRAM- The term ‘Program’ means the Homes and Buildings Energy Retrofits Program established by section 242.CommentsClose CommentsPermalink





(5) SECRETARY- The term ‘Secretary’ means the Secretary of Energy.CommentsClose CommentsPermalink





(6) SECURITY- The term ‘security’ has the meaning given the term in section 2 of the Securities Act of 1933 (15 U.S.C. 77b).CommentsClose CommentsPermalink





(7) STATE- The term ‘State’ means--CommentsClose CommentsPermalink





(A) a State;CommentsClose CommentsPermalink





(B) the District of Columbia;CommentsClose CommentsPermalink





(C) the Commonwealth of Puerto Rico; andCommentsClose CommentsPermalink





(D) any other territory or possession of the United States.CommentsClose CommentsPermalink

SEC. 222. HOMES AND BUILDINGS ENERGY RETROFITS PROGRAM.

(a) Establishment- There is established in the Department of Energy a program to be known as the Homes and Buildings Energy Retrofits Program, which shall have annual target energy efficiency retrofit rates of--CommentsClose CommentsPermalink





(1) 5 percent for homes; andCommentsClose CommentsPermalink





(2) 2 percent for commercial buildings.CommentsClose CommentsPermalink





(b) Eligibility Criteria-CommentsClose CommentsPermalink





(1) IN GENERAL- In administering the Program, the Secretary shall establish eligibility criteria for applicants for financial assistance under subsection (c) who can offer financial products and programs consistent with the purposes of this subtitle.CommentsClose CommentsPermalink





(2) CRITERIA- Criteria for applicants shall--CommentsClose CommentsPermalink





(A) take into account--CommentsClose CommentsPermalink





(i) expected energy savings;CommentsClose CommentsPermalink





(ii) percentage electricity rate increases in areas to be served by the applicant that are attributable to implementation of the Federal diverse energy standard;CommentsClose CommentsPermalink





(iii) the number and type of buildings that can be served by the applicant, the size of the potential market, and the scope of the program (in terms of measures or technologies to be used);CommentsClose CommentsPermalink





(iv) the ability of the applicant to successfully execute the proposed program and maintain the performance of the proposed projects and investments;CommentsClose CommentsPermalink





(v) financial criteria, as applicable, including the ability of the applicant to raise private capital or other sources of funds for the proposed program;CommentsClose CommentsPermalink





(vi) criteria that enable the Secretary to determine sound program design, including--CommentsClose CommentsPermalink





(I) an assurance of credible energy efficiency or renewable energy generation performance; andCommentsClose CommentsPermalink





(II) financial product or program design that effectively reduces barriers posed by traditional financing programs;CommentsClose CommentsPermalink





(vii) such criteria, standards, guidelines, and mechanisms as will enable the Secretary, to the maximum extent practicable, to communicate to program sponsors and originators, servicers, and sellers of financial obligations the eligibility of loans for resale;CommentsClose CommentsPermalink





(viii) the ability of the applicant to report relevant data on program performance; andCommentsClose CommentsPermalink





(ix) the ability of the applicant to use incentives or marketing techniques that are likely to result in successful market penetration; andCommentsClose CommentsPermalink





(B) encourage--CommentsClose CommentsPermalink





(i) use of technologies that are either well-established or new, but demonstrated to be reliable;CommentsClose CommentsPermalink





(ii) applicants that can offer building owners or lessees payment plans generally designed to permit the combination of energy payments and assessments or charges from the installation or payments associated with financing to be lower than the energy payments prior to installing energy efficiency measures or on-site renewable energy technologies;CommentsClose CommentsPermalink





(iii) applicants that will use repayment mechanisms convenient for building owners, such as tax-increment financing, special tax districts, on-utility-bill repayment, or other mechanisms;CommentsClose CommentsPermalink





(iv) applicants that can provide convenience for building owners by combining participation in the lending program with--CommentsClose CommentsPermalink





(I) processing for tax credits and other incentives; andCommentsClose CommentsPermalink





(II) technical assistance in selecting and working with vendors to provide energy efficiency measures or on-site renewable energy generation systems;CommentsClose CommentsPermalink





(v) applicants the projects of which will use contractors that hire within a 50-mile radius of the project, or as close as is practicable;CommentsClose CommentsPermalink





(vi) applicants that will use materials and technologies manufactured in the United States;CommentsClose CommentsPermalink





(vii) partnerships with or other involvement of State workforce investment boards, labor organizations, community-based organizations, State-approved apprenticeship programs, and other job training entities; andCommentsClose CommentsPermalink





(viii) applicants that can provide financing programs or financial products that mitigate barriers other than the initial expense of installing measures or technologies, such as unfavorable lease terms.CommentsClose CommentsPermalink





(3) DIVERSE PORTFOLIO- In establishing criteria and selecting applicants to receive financial assistance under subsection (c), the Secretary shall select a portfolio of investments that reaches a diversity of building owners and lessees, including--CommentsClose CommentsPermalink





(A) individual homeowners or lessees;CommentsClose CommentsPermalink





(B) multifamily apartment building owners or lessees;CommentsClose CommentsPermalink





(C) condominium owners associations;CommentsClose CommentsPermalink





(D) commercial building owners or lessees, including multi-tenant commercial properties;CommentsClose CommentsPermalink





(E) industrial building owners or lessees; andCommentsClose CommentsPermalink





(F) schools, hospitals, and other buildings designated by the Secretary.CommentsClose CommentsPermalink





(c) Financial Assistance-CommentsClose CommentsPermalink





(1) IN GENERAL- For applicants determined to be eligible under criteria established under subsection (b), the Secretary may provide financial assistance in the form of direct loans, letters of credit, loan guarantees, insurance products, other credit enhancements or debt instruments (including securitization or indirect credit support), or other financial products to promote the widespread deployment of, and mobilize private sector support of credit and investment institutions for, energy efficiency measures and on-site renewable energy generation systems in buildings.CommentsClose CommentsPermalink





(2) FINANCIAL PRODUCTS- The Secretary--CommentsClose CommentsPermalink





(A) in cooperation with Federal, State, local, and private sector entities, shall develop debt instruments that provide for the aggregation of, or directly aggregate, programs for the deployment of energy efficiency measures and on-site renewable energy generation systems on a scale appropriate for residential, commercial, or industrial applications; andCommentsClose CommentsPermalink





(B) may insure, guarantee, purchase, and make commitments to purchase any debt instrument associated with the deployment of clean energy technologies (including subordinated securities) for the purpose of enhancing the availability of private financing for the deployment of energy efficiency measures and on-site renewable energy generation systems.CommentsClose CommentsPermalink





(3) APPLICATION REVIEW-CommentsClose CommentsPermalink





(A) IN GENERAL- To the maximum extent practicable and consistent with sound business practices, the Secretary shall seek to expedite reviews of applications for credit support under this subtitle in order to communicate to applicants in a timely manner the likelihood of support so that the applicants can seek private capital in order to receive final approval.CommentsClose CommentsPermalink





(B) MECHANISMS- In carrying out this paragraph, the Secretary shall consider using mechanisms such as--CommentsClose CommentsPermalink





(i) a system for conditional pre-approval that informs applicants that final applicants will be approved, if established conditions are met;CommentsClose CommentsPermalink





(ii) clear guidelines that communicate to applicants what level of performance on eligibility criteria will ensure approval for credit support or resale;CommentsClose CommentsPermalink





(iii) in the case of an applicant portfolio of more than 300 loans or other financial arrangement, an expedited review based on statistical sampling to ensure that the loan or other financial arrangement meets the eligibility criteria; andCommentsClose CommentsPermalink





(iv) in the case of an applicant with a demonstrated track record with respect to successfully originating eligible loans or other financial arrangements and who meets appropriate other criteria determined by the Secretary, a system for delegating responsibility for meeting eligibility criteria that includes appropriate protections such as buy-back mechanisms in the event criteria are determined not to have been met.CommentsClose CommentsPermalink





(C) DISPOSITION OF DEBT OR INTEREST- The Secretary may acquire, hold, and sell or otherwise dispose of, pursuant to commitments or otherwise, any debt associated with the deployment of clean energy technologies or interest in the debt.CommentsClose CommentsPermalink





(D) PRICING-CommentsClose CommentsPermalink





(i) IN GENERAL- The Secretary may establish requirements, and impose charges or fees, which may be regarded as elements of pricing, for different classes of applicants, originators, sellers, servicers, or services.CommentsClose CommentsPermalink





(ii) CLASSIFICATION OF APPLICANTS, ORIGINATORS, SELLERS AND SERVICERS- For the purpose of clause (i), the Secretary may classify applicants, originators, sellers and servicers as necessary to promote transparency and liquidity and properly characterize the risk of default.CommentsClose CommentsPermalink





(E) SECONDARY MARKET SUPPORT-CommentsClose CommentsPermalink





(i) IN GENERAL- The Secretary may lend on the security of, and make commitments to lend on the security of, any debt that the Secretary has insured, guaranteed, issued or is authorized to purchase under this section.CommentsClose CommentsPermalink





(ii) AUTHORIZED ACTIONS- On such terms and conditions as the Secretary may prescribe, the Secretary may--CommentsClose CommentsPermalink





(I) give security;CommentsClose CommentsPermalink





(II) insure;CommentsClose CommentsPermalink





(III) guarantee;CommentsClose CommentsPermalink





(IV) purchase;CommentsClose CommentsPermalink





(V) sell;CommentsClose CommentsPermalink





(VI) pay interest or other return; andCommentsClose CommentsPermalink





(VII) issue notes, debentures, bonds, or other obligations or securities.CommentsClose CommentsPermalink





(F) LENDING ACTIVITIES-CommentsClose CommentsPermalink





(i) IN GENERAL- The Secretary shall determine--CommentsClose CommentsPermalink





(I) the volume of the lending activities of the Program; andCommentsClose CommentsPermalink





(II) the types of loan ratios, risk profiles, interest rates, maturities, and charges or fees in the secondary market operations of the Program.CommentsClose CommentsPermalink





(ii) OBJECTIVES- Determinations under clause (i) shall be consistent with the objectives of--CommentsClose CommentsPermalink





(I) providing an attractive investment environment for programs that install energy efficiency measures or on-site renewable energy generation technologies;CommentsClose CommentsPermalink





(II) making the operations of the Program self-supporting over a reasonable time frame;CommentsClose CommentsPermalink





(III) encouraging, and not crowding out, reasonably priced private financing mechanisms and institutions; andCommentsClose CommentsPermalink





(IV) advancing the goals established under this subtitle.CommentsClose CommentsPermalink





(G) EXEMPT SECURITIES- All securities issued, insured, or guaranteed by the Secretary shall, to the same extent as securities that are direct obligations of or obligations guaranteed as to principal or interest by the United States, be considered to be exempt securities within the meaning of the laws administered by the Securities and Exchange Commission.CommentsClose CommentsPermalink

SEC. 223. GENERAL PROVISIONS.

(a) Periodic Reports- Not later than 1 year after commencement of operation of the Program and at least biannually thereafter, the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report that includes a description of the Program in meeting the purpose and goals established by or pursuant to this subtitle.CommentsClose CommentsPermalink





(b) Audits by the Comptroller General-CommentsClose CommentsPermalink





(1) IN GENERAL- The programs, activities, receipts, expenditures, and financial transactions of the Program shall be subject to audit by the Comptroller General of the United States under such rules and regulations as may be prescribed by the Comptroller General.CommentsClose CommentsPermalink





(2) ACCESS- The representatives of the Government Accountability Office shall--CommentsClose CommentsPermalink





(A) have access to the personnel and to all books, accounts, documents, records (including electronic records), reports, files, and all other papers, automated data, things, or property belonging to, under the control of, or in use by the Program, or any agent, representative, attorney, advisor, or consultant retained by the Program, and necessary to facilitate the audit;CommentsClose CommentsPermalink





(B) be afforded full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians;CommentsClose CommentsPermalink





(C) be authorized to obtain and duplicate any such books, accounts, documents, records, working papers, automated data and files, or other information relevant to the audit without cost to the Comptroller General; andCommentsClose CommentsPermalink





(D) have the right of access of the Comptroller General to such information pursuant to section 716(c) of title 31, United States Code.CommentsClose CommentsPermalink





(3) ASSISTANCE AND COST-CommentsClose CommentsPermalink





(A) IN GENERAL- For the purpose of conducting an audit under this subsection, the Comptroller General may, in the discretion of the Comptroller General, employ by contract, without regard to section 3709 of the Revised Statutes (41 U.S.C. 5), professional services of firms and organizations of certified public accountants for temporary periods or for special purposes.CommentsClose CommentsPermalink





(B) REIMBURSEMENT-CommentsClose CommentsPermalink





(i) IN GENERAL- On the request of the Comptroller General, the Secretary shall reimburse the General Accountability Office for the full cost of any audit conducted by the Comptroller General under this subsection.CommentsClose CommentsPermalink





(ii) CREDITING- Such reimbursements shall--CommentsClose CommentsPermalink





(I) be credited to the appropriation account entitled ‘Salaries and Expenses, Government Accountability Office’ at the time at which the payment is received; andCommentsClose CommentsPermalink





(II) remain available until expended.CommentsClose CommentsPermalink

SEC. 224. AUTHORIZATION OF APPROPRIATIONS.

There is authorized to be appropriated to carry out this subtitle $2,000,000,000.CommentsClose CommentsPermalink

Subtitle D--Rural Energy Savings ProgramCommentsClose CommentsPermalink

SEC. 231. RURAL ENERGY SAVINGS PROGRAM.

Title VI of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7901 note et seq.) is amended by adding at the end the following:CommentsClose CommentsPermalink

‘SEC. 6407. RURAL ENERGY SAVINGS PROGRAM.

‘(a) Definitions- In this section:CommentsClose CommentsPermalink





‘(1) ELIGIBLE ENTITY- The term ‘eligible entity’ means--CommentsClose CommentsPermalink





‘(A) any public power district, public utility district, or similar entity, or any electric cooperative described in sections 501(c)(12) or 1381(a)(2)(C) of the Internal Revenue Code of 1986, that borrowed and repaid, prepaid, or is paying an electric loan made or guaranteed by the Rural Utilities Service (or any predecessor agency); orCommentsClose CommentsPermalink





‘(B) any entity primarily owned or controlled by an entity or entities described in subparagraph (A).CommentsClose CommentsPermalink





‘(2) ENERGY EFFICIENCY MEASURES- The term ‘energy efficiency measures’ means, for or at property served by an eligible entity, structural improvements and investments in cost-effective, commercial off-the-shelf technologies to reduce home, barn, and permanent farm structure energy use.CommentsClose CommentsPermalink





‘(3) QUALIFIED CONSUMER- The term ‘qualified consumer’ means a consumer served by an eligible entity that has the ability to repay a loan made under subsection (c), as determined by an eligible entity.CommentsClose CommentsPermalink





‘(4) SECRETARY- The term ‘Secretary’ means the Secretary of Agriculture, acting through the Rural Utilities Service.CommentsClose CommentsPermalink





‘(b) Loans and Grants to Eligible Entities-CommentsClose CommentsPermalink





‘(1) LOANS AUTHORIZED- Subject to paragraph (2), the Secretary shall make loans to eligible entities that agree to use the loan funds to make loans to qualified consumers as described in subsection (c) for the purpose of implementing energy efficiency measures.CommentsClose CommentsPermalink





‘(2) LIST, PLAN, AND MEASUREMENT AND VERIFICATION REQUIRED-CommentsClose CommentsPermalink





‘(A) IN GENERAL- As a condition to receiving a loan or grant under this subsection, an eligible entity shall--CommentsClose CommentsPermalink





‘(i) establish a list of energy efficiency measures that is expected to decrease energy use or costs of qualified consumers;CommentsClose CommentsPermalink





‘(ii) prepare an implementation plan for use of the loan funds; andCommentsClose CommentsPermalink





‘(iii) provide for appropriate measurement and verification to ensure the effectiveness of the energy efficiency loans made by the eligible entity and that there is no conflict of interest in the carrying out of this section.CommentsClose CommentsPermalink





‘(B) REVISION OF LIST OF ENERGY EFFICIENCY MEASURES- An eligible entity may update the list required under subparagraph (A)(i) to account for newly available efficiency technologies, subject to the approval of the Secretary.CommentsClose CommentsPermalink





‘(C) EXISTING ENERGY EFFICIENCY PROGRAMS- An eligible entity that, on or before the date of the enactment of this section or within 60 days after such date, has already established an energy efficiency program for qualified consumers may use an existing list of energy efficiency measures, implementation plan, or measurement and verification system of that program to satisfy the requirements of subparagraph (A) if the Secretary determines the list, plans, or systems are consistent with the purposes of this section.CommentsClose CommentsPermalink





‘(3) NO INTEREST- A loan under this subsection shall bear no interest.CommentsClose CommentsPermalink





‘(4) REPAYMENT- A loan under this subsection shall be repaid not more than 10 years from the date on which an advance on the loan is first made to the eligible entity.CommentsClose CommentsPermalink





‘(5) LOAN FUND ADVANCES- The Secretary may provide eligible entities with a schedule of not more than 10 years for advances of loan funds, except that any advance of loan funds to an eligible entity in any single year shall not exceed 50 percent of the approved loan amount.CommentsClose CommentsPermalink





‘(6) JUMP-START GRANTS- The Secretary may make grants available to eligible entities selected to receive a loan under this subsection in order to assist an eligible entity to defray costs, including costs of contractors for equipment and labor, except that no eligible entity may receive a grant amount that is greater than four percent of the loan amount.CommentsClose CommentsPermalink





‘(c) Loans to Qualified Consumers-CommentsClose CommentsPermalink





‘(1) TERMS OF LOANS- Loans made by an eligible entity to qualified consumers using loan funds provided by the Secretary under subsection (b)--CommentsClose CommentsPermalink





‘(A) may bear interest, not to exceed 3 percent, to be used for purposes that include establishing a loan loss reserve and to offset personnel and program costs of eligible entities to provide the loans;CommentsClose CommentsPermalink





‘(B) shall finance energy efficiency measures for the purpose of decreasing energy usage or costs of the qualified consumer by an amount such that a loan term of not more than 10 years will not pose an undue financial burden on the qualified consumer, as determined by the eligible entity;CommentsClose CommentsPermalink





‘(C) shall not be used to fund energy efficiency measures made to personal property unless the personal property--CommentsClose CommentsPermalink





‘(i) is or becomes attached to real property as a fixture; orCommentsClose CommentsPermalink





‘(ii) is a manufactured home;CommentsClose CommentsPermalink





‘(D) shall be repaid through charges added to the electric bill of the qualified consumer; andCommentsClose CommentsPermalink





‘(E) shall require an energy audit by an eligible entity to determine the impact of proposed energy efficiency measures on the energy costs and consumption of the qualified consumer.CommentsClose CommentsPermalink





‘(2) CONTRACTORS- In addition to any other qualified general contractor, eligible entities may serve as general contractors.CommentsClose CommentsPermalink





‘(d) Measurement and Verification, Training, and Technical Assistance-CommentsClose CommentsPermalink





‘(1) CONTRACT AUTHORIZED- Not later than 90 days after the date of enactment of this section, the Secretary--CommentsClose CommentsPermalink





‘(A) shall establish a plan for measurement and verification, training, and technical assistance of the program; andCommentsClose CommentsPermalink





‘(B) may enter into 1 or more contracts for the purposes of--CommentsClose CommentsPermalink





‘(i) providing measurement and verification activities; andCommentsClose CommentsPermalink





‘(ii) developing a program to provide technical assistance and training to the employees of eligible entities to carry out this section.CommentsClose CommentsPermalink





‘(2) USE OF SUBCONTRACTORS AUTHORIZED- A qualified entity that enters into a contract under paragraph (1) may use subcontractors to assist the qualified entity in performing the contract.CommentsClose CommentsPermalink





‘(e) Fast Start Demonstration Projects-CommentsClose CommentsPermalink





‘(1) DEMONSTRATION PROJECTS REQUIRED- The Secretary shall enter into agreements with eligible entities (or groups of eligible entities) that have energy efficiency programs described in subsection (b)(2)(C) to establish energy efficiency loan demonstration projects consistent with the purposes of this section.CommentsClose CommentsPermalink





‘(2) EVALUATION CRITERIA- In determining which eligible entities to award loans under this section, the Secretary shall take into consideration entities that--CommentsClose CommentsPermalink





‘(A) implement approaches to energy audits or investments in energy efficiency measures that yield measurable and predictable savings;CommentsClose CommentsPermalink





‘(B) use measurement and verification processes to determine the effectiveness of energy efficiency loans made by eligible entities;CommentsClose CommentsPermalink





‘(C) include training for employees of eligible entities, including any contractors of such entities, to implement or oversee the activities described in subparagraphs (A) and (B);CommentsClose CommentsPermalink





‘(D) provide for the participation of a majority of eligible entities in a State;CommentsClose CommentsPermalink





‘(E) reduce the need for generating capacity;CommentsClose CommentsPermalink





‘(F) provide efficiency loans to--CommentsClose CommentsPermalink





‘(i) not fewer than 20,000 consumers, in the case of a single eligible entity; orCommentsClose CommentsPermalink





‘(ii) not fewer than 80,000 consumers, in the case of a group of eligible entities; andCommentsClose CommentsPermalink





‘(G) serve areas where a large percentage of consumers reside--CommentsClose CommentsPermalink





‘(i) in manufactured homes; orCommentsClose CommentsPermalink





‘(ii) in housing units that are more than 50 years old.CommentsClose CommentsPermalink





‘(3) DEADLINE FOR IMPLEMENTATION- The agreements required by paragraph (1) shall be entered into not later than 90 days after the date of enactment of this section.CommentsClose CommentsPermalink





‘(4) EFFECT ON AVAILABILITY OF LOANS NATIONALLY- Nothing in this subsection shall delay the availability of loans to eligible entities on a national basis beginning not later than 180 days after the date of enactment of this section.CommentsClose CommentsPermalink





‘(5) ADDITIONAL DEMONSTRATION PROJECT AUTHORITY-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The Secretary may conduct demonstration projects in addition to the project required by paragraph (1).CommentsClose CommentsPermalink





‘(B) INAPPLICABILITY OF CERTAIN CRITERIA- The additional demonstration projects may be carried out without regard to subparagraphs (D), (F), or (G) of paragraph (2).CommentsClose CommentsPermalink





‘(f) Additional Authority- The authority provided in this section is in addition to any authority of the Secretary to offer loans or grants under any other law.CommentsClose CommentsPermalink





‘(g) Authorization of Appropriations-CommentsClose CommentsPermalink





‘(1) IN GENERAL- There is authorized to be appropriated to the Secretary for fiscal year 2010 $993,000,000 to carry out this section, to remain available until expended.CommentsClose CommentsPermalink





‘(2) AMOUNTS FOR LOANS, GRANTS, STAFFING- Of the amounts appropriated pursuant to the authorization of appropriations in paragraph (1), the Secretary shall make available--CommentsClose CommentsPermalink





‘(A) $755,000,000 for the purpose of covering the cost of direct loans to eligible entities under subsection (b) to subsidize gross obligations in the principal amount of not to exceed $4,900,000,000;CommentsClose CommentsPermalink





‘(B) $27,000,000 for activities under subsection (d);CommentsClose CommentsPermalink





‘(C) $200,000,000 for jump-start grants authorized by subsection (b)(6); andCommentsClose CommentsPermalink





‘(D) $1,100,000 for each of fiscal years 2010 through 2019 for 10 additional employees of the Rural Utilities Service to carry out this section.CommentsClose CommentsPermalink





‘(h) Effective Period- Subject to subsection (h)(1) and except as otherwise provided in this section, the loans, grants, and other expenditures required to be made under this section are authorized to be made during each of fiscal years 2010 through 2015.CommentsClose CommentsPermalink





‘(i) Regulations-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Except as otherwise provided in this subsection, not later than 180 days after the date of enactment of this section, the Secretary shall promulgate such regulations as are necessary to implement this section.CommentsClose CommentsPermalink





‘(2) PROCEDURE- The promulgation of the regulations and administration of this section shall be made without regard to--CommentsClose CommentsPermalink





‘(A) chapter 35 of title 44, United States Code (commonly known as the ‘Paperwork Reduction Act’); andCommentsClose CommentsPermalink





‘(B) the Statement of Policy of the Secretary of Agriculture effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices of proposed rulemaking and public participation in rulemaking.CommentsClose CommentsPermalink





‘(3) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING- In carrying out this section, the Secretary shall use the authority provided under section 808 of title 5, United States Code.CommentsClose CommentsPermalink





‘(4) INTERIM REGULATIONS- Notwithstanding paragraphs (1) and (2), to the extent regulations are necessary to carry out any provision of this section, the Secretary shall implement such regulations through the promulgation of an interim rule.’.CommentsClose CommentsPermalink

Subtitle E--Industrial Energy EfficiencyCommentsClose CommentsPermalink

SEC. 241. STATE PARTNERSHIP INDUSTRIAL ENERGY EFFICIENCY REVOLVING LOAN PROGRAM.

Section 399A of the Energy Policy and Conservation Act (42 U.S.C. 6371h-1) is amended--CommentsClose CommentsPermalink





(1) in the section heading, by inserting ‘and industry’ before the period at the end;CommentsClose CommentsPermalink





(2) by redesignating subsections (h) and (i) as subsections (i) and (j), respectively; andCommentsClose CommentsPermalink





(3) by inserting after subsection (g) the following:CommentsClose CommentsPermalink





‘(h) State Partnership Industrial Energy Efficiency Revolving Loan Program-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The Secretary shall carry out a program under which the Secretary shall provide grants to eligible lenders to pay the Federal share of creating a revolving loan program under which loans are provided to commercial and industrial manufacturers to implement commercially available technologies or processes that significantly--CommentsClose CommentsPermalink





‘(A) reduce systems energy intensity, including the use of energy intensive feedstocks; andCommentsClose CommentsPermalink





‘(B) improve the industrial competitiveness of the United States.CommentsClose CommentsPermalink





‘(2) ELIGIBLE LENDERS- To be eligible to receive cost-matched Federal funds under this subsection, a lender shall--CommentsClose CommentsPermalink





‘(A) be a community and economic development lender that the Secretary certifies meets the requirements of this subsection;CommentsClose CommentsPermalink





‘(B) lead a partnership that includes participation by, at a minimum--CommentsClose CommentsPermalink





‘(i) a State government agency; andCommentsClose CommentsPermalink





‘(ii) a private financial institution or other provider of loan capital;CommentsClose CommentsPermalink





‘(C) submit an application to the Secretary, and receive the approval of the Secretary, for cost-matched Federal funds to carry out a loan program described in paragraph (1); andCommentsClose CommentsPermalink





‘(D) ensure that non-Federal funds are provided to match, on at least a dollar-for-dollar basis, the amount of Federal funds that are provided to carry out a revolving loan program described in paragraph (1).CommentsClose CommentsPermalink





‘(3) AWARD- The amount of cost-matched Federal funds provided to an eligible lender shall not exceed $100,000,000 for any fiscal year.CommentsClose CommentsPermalink





‘(4) RECAPTURE OF AWARDS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- An eligible lender that receives an award under paragraph (1) shall be required to repay to the Secretary an amount of cost-match Federal funds, as determined by the Secretary under subparagraph (B), if the eligible lender is unable or unwilling to operate a program described in this subsection for a period of not less than 10 years beginning on the date on which the eligible lender first receives funds made available through the award.CommentsClose CommentsPermalink





‘(B) DETERMINATION BY SECRETARY- The Secretary shall determine the amount of cost-match Federal funds that an eligible lender shall be required to repay to the Secretary under subparagraph (A) based on the consideration by the Secretary of--CommentsClose CommentsPermalink





‘(i) the amount of non-Federal funds matched by the eligible lender;CommentsClose CommentsPermalink





‘(ii) the amount of loan losses incurred by the revolving loan program described in paragraph (1); andCommentsClose CommentsPermalink





‘(iii) any other appropriate factor, as determined by the Secretary.CommentsClose CommentsPermalink





‘(C) USE OF RECAPTURED COST-MATCH FEDERAL FUNDS- The Secretary may distribute to eligible lenders under this subsection each amount received by the Secretary under this paragraph.CommentsClose CommentsPermalink





‘(5) ELIGIBLE PROJECTS- A program for which cost-matched Federal funds are provided under this subsection shall be designed to accelerate the implementation of industrial and commercial applications of technologies or processes that--CommentsClose CommentsPermalink





‘(A) improve energy efficiency;CommentsClose CommentsPermalink





‘(B) enhance the industrial competitiveness of the United States; andCommentsClose CommentsPermalink





‘(C) achieve such other goals as the Secretary determines to be appropriate.CommentsClose CommentsPermalink





‘(6) EVALUATION- The Secretary shall, to the maximum extent practicable, evaluate applications for cost-matched Federal funds under this subsection taking into consideration--CommentsClose CommentsPermalink





‘(A) the description of the program to be carried out with the cost-matched Federal funds;CommentsClose CommentsPermalink





‘(B) the commitment to provide non-Federal funds in accordance with paragraph (2)(D);CommentsClose CommentsPermalink





‘(C) program sustainability;CommentsClose CommentsPermalink





‘(D) the capability of the applicant;CommentsClose CommentsPermalink





‘(E) the quantity of energy savings or energy feedstock minimization;CommentsClose CommentsPermalink





‘(F) percentage electricity rate increases in areas to be served by the applicant that are attributable to implementation of the Federal diverse energy standard established under section 610 of the Public Utility Regulatory Policies Act of 1978;CommentsClose CommentsPermalink





‘(G) the ability to fund energy efficient projects on a timely basis after the date of the grant award; andCommentsClose CommentsPermalink





‘(H) such other factors as the Secretary determines appropriate.CommentsClose CommentsPermalink





‘(7) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to carry out this subsection $500,000,000 for each of fiscal years 2010 through 2014.’.CommentsClose CommentsPermalink

Subtitle F--Appliance and Equipment Efficiency StandardsCommentsClose CommentsPermalink

SEC. 251. APPLIANCE AND EQUIPMENT EFFICIENCY.

(a) Coverage- Section 322(a) of the Energy Policy and Conservation Act (42 U.S.C. 6292(a)) is amended--CommentsClose CommentsPermalink





(1) by designating paragraph (20) as paragraph (21); andCommentsClose CommentsPermalink





(2) by inserting after paragraph (19) the following:CommentsClose CommentsPermalink





‘(20) Computer monitors and displays.’.CommentsClose CommentsPermalink





(b) Energy Conservation Standards- Section 325(l) of the Energy Policy and Conservation Act (42 U.S.C. 6295(l)) is amended--CommentsClose CommentsPermalink





(1) by striking ‘paragraph (19)’ each place it appears and inserting ‘paragraph (21)’;CommentsClose CommentsPermalink





(2) in paragraph (1), in the matter preceding subparagraph (A), by striking ‘may’ and inserting ‘shall’; andCommentsClose CommentsPermalink





(3) in paragraph (3), insert ‘and computer monitors and displays’ after ‘television sets’.CommentsClose CommentsPermalink





(c) Definition of Industrial Equipment- Section 340(2)(B) of the Energy Policy and Conservation Act (42 U.S.C. 6311(2)(B)) is amended--CommentsClose CommentsPermalink





(1) in clause (xi), by striking ‘and’ at the end;CommentsClose CommentsPermalink





(2) in clause (xii), by striking the period at the end and inserting ‘; and’; andCommentsClose CommentsPermalink





(3) by adding at the end the following:CommentsClose CommentsPermalink





‘(xiii) other equipment.’.CommentsClose CommentsPermalink





(d) Covered Equipment- Section 342 of the Energy Policy and Conservation Act (42 U.S.C. 6313) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(g) Covered Equipment- The Secretary shall establish an energy conservation standard for each type or class of covered equipment.’.CommentsClose CommentsPermalink





(e) Report on Efficiency Standards for Additional Consumer Products and Commercial and Industrial Equipment- Not later than 1 year after the date of enactment of this Act, the Secretary of Energy shall submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a report that identifies--CommentsClose CommentsPermalink





(1) consumer products and commercial and industrial equipment not covered by efficiency standards (as of the date of enactment of this Act) that have significant national energy savings potential, as determined by the Secretary;CommentsClose CommentsPermalink





(2) levels of potential energy savings for products and equipment identified under paragraph (1);CommentsClose CommentsPermalink





(3) which of the products and equipment identified under paragraph (1) are likely, prima facie, to qualify as covered under authority of the Secretary in existence on the date of enactment of this Act, and a plan for formal review of those products and equipment under existing authority; andCommentsClose CommentsPermalink





(4) which of the products identified under paragraph (1) require additional authority for the Secretary to be covered.CommentsClose CommentsPermalink